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Difficulty: MediumPrimary, Secondary, and Tertiary Sectors of Production

An industrial firm operating in Ogun State carries out several operations within its business model: excavating raw limestone from local quarry deposits, processing the raw limestone into finished bagged cement at its factory, hiring transport agencies to distribute cement to regional market depots, and retaining a private physician to provide direct healthcare services to factory workers. Which of these activities specifically represents the secondary sector stage of production?

  1. A
    Excavating raw limestone from the local quarry deposits
  2. Processing the raw limestone into finished bagged cement at the factoryAnswer
  3. C
    Retaining a private physician to provide direct healthcare services to factory workers
  4. D
    Using the processed cement strictly for personal building projects without market exchange

Answer

Processing the raw limestone into finished bagged cement at the factory represents the secondary sector stage of production.
The correct response identifies the activity that transforms raw materials into finished usable products (converting raw limestone into bagged cement in a factory). Secondary production encompasses manufacturing, processing, and construction.

Step-by-Step Solution

1
Analyze the three main sectors of production in Commerce
Primary sector involves extracting raw natural resources (e.g., quarrying limestone). Secondary sector involves transforming raw materials into semi-finished or finished manufactured goods (e.g., manufacturing cement). Tertiary sector provides commercial and personal services (e.g., transport and healthcare).
Clear classification relies on distinguishing extraction from processing and service provision.
2
Map each business activity in the scenario to its correct production sector
Limestone quarrying is primary (extractive). Cement manufacturing is secondary (processing). Transport distribution is tertiary (commercial auxiliary). Medical consultation is tertiary (direct service).
Identifying the processing stage isolates the secondary sector operation.

Key Concept

Classification of Production Sectors
Estimated Time:1m 0s
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Topics

Primary, Secondary, and Tertiary Sectors of Production

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